tv After the Bell FOX Business February 16, 2015 4:00pm-5:01pm EST
they are paying no property taxes, no corporate taxes, no sales taxes. and with over 300 locations, and 3.7 million square feet available, there's a place that's right for your business. see if startup-ny can work for you. go to startup.ny.gov. [martha and mildred are good to. go. here's your invoice, ladies. a few stops later, and it looks like big ollie is on the mend. it might not seem that glamorous having an old pickup truck for an office... or filling your days looking down the south end of a heifer, but...i wouldn't have it any other way. look at that, i had my best month ever. and earned a shiny new office upgrade. i run on quickbooks. that's how i own it.
liz: good afternoon, everybody, i'm liz claman. live here at midtown. plenty ever market action overseas. european stocks open. asian markets open. let's talk about european stocks. they slipped from seven-year highs. investors very cautious as greece and e.u. finance ministers had a meetings all day long. yet it ended with no resolution. both sides continue to play hardball over a new debt deal. there is not one. how will that impact us tomorrow? we're bringing in michael binger of gradient invests. he is worried rate cuts will impact markets here. he is not worried about greece. plus, jeff cleveland of payden & regal, watching the relationship between oil and the 10-year yield. jeff, i will begin with you. >> hi, liz. liz: earlier today we had ol' trading on globe best. it was electronic platform t was absolutely trading here. it went above $53 a barrel.
what do we glean from that. >> if you look at the last six months, liz, one of the big things that stands out is the collapse in the price of oil, down about 50% over that time period. coins depth with that a fall in the u.s. -- couldn't dent with that, fall to 10-year treasury deal. if oil does stablize and even push a little bit higher here in the coming weeks that could signal a bottom or near term bottom at least in longer term u.s. interest rates. a lot of investors were in that trade over last few months. we may see yields in fact move higher. that is why we're watching the oil price every morning. >> so you have got to the formula. john donaldson has the actual timing here. you say between june and september the fed will raise rates, john, correct? >> they have been giving -- yes. they have been giving strong signals, both governors and regional fed presidents have been remarkably in unison giving
winks and nods if not absolute hints this is coming. the timing is data dependent. chairman yellen has been very adamant in all of her testimony and notes from the meetings about that point. i think the, issue that is in front of them right now, is while they have reinforced that data dependency, they have also stuck a calendar reference in the form of patience which everybody interprets to mean at least two more meet frogs now. they really need to get that calendar reference out there. they don't want to be stuck by what the calendar says, rather than what the economic data says. liz: let me give you a little breaking news here. loretta meister of the cleveland federal reserve in the last 30 minutes, that a rate hike this year, is quote a very viable option, very viable option. i bring it to michael binger now. does that affect the way you investing for your client at
all? >> no, i don't think so. if the economy is strong enough it warrants a rate hike i'm fine with. that i think it will be more towards the third quarter or fourth quarter. i don't think it will be sooner. but you know stocks are now up 2% for the year. that is better than down three, right? i mean people, you know, people are optimistic on europe. oil recovered, seems like some kind of a bottom in there. that brought commodity stocks up. apple has just been a monster and that really drives indexes because it is such a big component. we're sticking to our zero to 5% forecast. flattish year for stocks. nothing too bad or nothing too great. liz: is june too late? loretta is saying june at federal reserve. that might shock the market especially with people like warren buffett here seeing i don't see how they pull that off? they kept saying it will be in 2015 and now they're kind of stuck doing that, or, jeff, can we actually stand on our own two feet if we raise rates by nano
inch? it is ridiculous we could handle it, right? >> right. zero fed funds rate is hedge level for the overnight rate and given what we've seen in the last 12 months for the u.s. labor market in particular, over three million jobs added, i think absolutely the u.s. economy can stand on its own two feet. the big question, liz, we've had, will they really hike with inflation as low as it is? we're at about 1.4% year-over-year on their favorite, their key gauge of inflation, the core pce. we think that could hang out below 1.5% throughout the year. do they really hike, absent sort of inflation pressure? that is the really key question. liz: i'm not sure anybody really knows but that brings us right to this, john donaldson. are you bearish, are you neutral or are you bullish right now? let's make people some money here. >> i think in terms of rates we're certainly conservative to being bearish. we do think rates will end up being a little higher.
10-year treasury is at 2.05. could it have a trade some point during the year, back toward 2.70, 2.75, something like that? we think that is possible. maybe concept of a growth scare, where all of sudden people say gee, the could machine my is doing better than people expect, i think jeff hit one of the best nails right on the head, is framing this conversation in the right reference because we are at zero rates and a lot of the people who are more strident on the fact that the fed can not raise rates talk at though we're at mid-cycle rates and we're actually ratcheting toward a tightening. we're just taking off the emergency zero and, you know, the question becomes, is the economy in a position where the rates deserve to be at zero? we think no, it has gotten better than that. liz: okay. let's spin it forward then, jeff. we're not in a emergency situation anymore. >> we are not.
>> the patient can not now lurch a little bit closer toward the door of the hospital and get the heck out of the hospital. what would you be investing in. >> checking out. >> what would you invest in? checking out more. >> we think there are opportunities in the bond market still, particularly high-yield bond market has taken a beating last six months. we think there are probably some opportunities there. liz, you led in the previous segment with what is going on in europe and don't forget the ecb is buying bonds, the bank of japan is buying bonds. that will leave a net negative amount of bonds for investors to buy this year. we still think u.s. assets will be a good place for global investors and u.s. investors to look. liz: before we bo, michael actually has two names. you're liking ups and emerson electric. why those two names? >> i think in a flattish market you really need to be more defensive. you need to buy stocks down and not hitting new highs.
more importantly i think you need the 3% dividend in back pocket n a flattish year that add as lot to returns. liz: amen. >> these are great companies. they are blue chip. emerson is down because many some european exposure and because of some oil and gas exposure. i think they will survive. ups has a very high quality problem. amount of shipments and volume they had exploded in fourth quarter. that cost hem them a little bit. they will get the port strike fixed and don't want to buy them at highs of the year. liz: you don't want to buy them at highs of the year. i agree with that. john donaldson, jeff cleveland, good to see you. >> thanks. liz: bone-chilling arctic air follows record-setting snowfall. new england digs out of its fourth snowstorm this year. fox meteorologist, janice dean is here. you scared me last hour, tennessee, aside from boston is going to get a lot of ice. show some love to the tennessee people too.
>> absolutely. i just want to talk about boston because they have seen record amounts of snow here. we'll be in a deep freeze for the foreseeable future with chance of more snow in days to come. the temperatures across the northeast into incredible numbers here, especially coming to the windchill, most dangerous part of this. you need to be indoors, overnight tonight certainly into tomorrow. this windchill is going to say with us for the next week or so, in some cases we'll struggle to feel like we're out of the single digits. so that is the problem there. we'll not see any melting at all. so what liz was talking about the is the threat for this freezing rain that is already hit the mid-south, portions of tennessee and kentucky, now moving in towards the carolinas and virginia. this is overnight tonight. the pinks here, that is where we've got the freezing rain mixture and we have ice storm warnings for portions of tennessee right now and i believe they're probably going to put some ice storm warnings for the carolinas as we go into overnight.
the for d.c., this is the first big snow all season. for new york, long island and boston they have the tail end of this storm system which is great news. however i don't think any measurable snow is good news for boston area. to reiterate, as we go into tonight and tomorrow. look at ice accumulation. you can't be driving or outdoors. this is significant and draws. north of the area we see six to 12 inches especially higher elevations. this will go overnight into the rush hour tomorrow. be aware. first big storm for the mid-south, liz. updating you. liz: we feel for them definitely because they're not really used to it down there. >> they're not. >> thank you very much, janice dean. although they got hit last year with the polar vortex. there were not enough snow boots down there. hopefully they learned from last year. the obama administration releasing long-awaited regulations on drone use this came out in the last 24 hours. the policies would replace current near band on flying drones for commercial use.
rich, i guess this is good for some commercial folks doing this already. they're happy. >> sure, liz, for small operators, long-awaited, fairly welcome set of rules to govern commercial drone use. for companies like amazon looking to deploy them widely to deliver packages to their customers this effectively bans their strategy. faa required that commercial drones weigh 55 pounds or less, travel 100 miles an hour or slower and stay within 500 feet of the ground. they must avoid flight paths of airplanes and helicopters and keep the drone in their sites all times. that is where amazon says the faa is throttling its delivery system. some in congress called these proposed rules too restrictive. in a statement, senator john hoeven north dakota republican says quote, the administration needs to outline an actual strategy for integration does the research required for the uas industry to reach full potential. technology is here. demand is here. ability for them to uas to use
nas, national airspace must keep pace. they designed rules to inspect infrastructure, researchers to observe the environment and realtors to capture pictures of property. the faa stretches these rules are only proposed rules. the public can comment next 60 days. then officials can change them before approving or rejecting them. liz. liz: i think there were 30,000 comments from the public on hobby drones alone, rich, i read that. >> yeah. it is not uncommon to get tens -- look at net neutrality. want an example of proposed rules go away? that what happened with net neutrality. so many negative comments what the chairman put out last year killed that proposal. they had to go back to the drawing board. this no way is final. liz: thank you very much, rich edson on drones. we love to know what you think, try to be each-minded. should drones be legal for all use, or do they pose a risk? one dropped on the white house
lawn. another one buzzed past the space needle. could have shattered glass. we don't want to clamp down on business opportunities. @fbnatb. we'll read some of your answers coming up. i'm here live. i want to hear from you guys. iphone, ipad, now an icar? apple may work on electric-branded vehicle. is apple crazy do to it without a partner in the car business? or can they, as they always have, go it alone? europe's finance minister saying a deal with greece unlikely. nothing happened today. they have gone home at least for now. should the e.u. say good-bye greece. or do they need to hold on tight to prevent another country like russia from swooping in? new report rankses one company as the most successful in the world. its stock has had annual return of more than 20% every year for nearly half a century? who is that? the question marks will be blown
apart when we come back because we'll tell you straight ahead. ♪ know that chasing performance can mean lower returns and fewer choices in retirement. know that proper allocation could help increase returns so you can enjoy that second home sooner. know the right financial planning can help you save for college and retirement. know where you stand with pnc total insight. a new investing and banking experience with personalized guidance and online tools. visit a branch, call or go online today. but for people with copd, the world is filled with air. sometimes breathing air can be difficult. if you have copd, ask your doctor about once-daily anoro ellipta. it helps people with copd breathe better for a full 24hours. anoro ellipta is the first fda-approved product containing two long-acting bronchodilators in one inhaler.
anoro is not for asthma. anoro contains a type of medicine that increases risk of death in people with asthma. it is not known if this risk is increased in copd. anoro won't replace rescue inhalers for sudden copd symptoms and should not be used more than once a day. tell your doctor if you have a heart condition, or high blood pressure. tell your doctor if you have glaucoma, prostate or bladder problems, or problems passing urine as anoro may make these problems worse. call your doctor right away if you have worsened breathing, chest pain, swelling of your mouth or tongue, problems urinating or eye problems, including vision changes or eye pain while taking anoro. nothing can reverse copd. the world is filled with air, and anoro is helping people with copd breath air better. get your first prescription free at anoro.com. the smartest or nothing. the quietest or nothing. the sleekest...
and european finance ministers failed to reach a new bailout deal for the country. they were meeting today. the deadline is february 28th. is it time to just let greece go from the european union or must we hold on tight for reasons way more important than just the eurozone? let's bring in our panel. gary kaltbaum, kaltbaum capital management and fox business contributor. steve lien lieb and fox business's jo ling kent. gary, hold on tight or let greece go. >> i think eventuality they're gone. here is the simple problem. when uh-oh bank a little bit of money, that is your problem. when you owe a lot of money that is the bank's problem. you could have extension of extension and kick the can down the road because greece decides to stick a certain finger up at eurozone and there will be writeoffs and capital.
italy and spain possibly could follow suit. you have too be careful. i think they stay involved with the eurozone. liz: stay involved, you were talking about a lot of club med nations in europe, a lot of important nations in europe but what about strategic countries around greece that have nothing to do with the european union, steven, and i'm talking russia and china? >> yeah. i mean what people don't realize, enough, they're not paying enough attention, liz, to the fact that there is a major swing from west to east right now and both china and russia have their eyes on greece. right now russia is greece's major trading partner, the largest trading partner is russia. china wants to use the greek port as a starting point for a train that will go, start at greece, go all the way to hungary and be an outpost for trading all threw europe. liz: they are strategic i important. who is to say the putin will go in and say the black sea is sort of near the mediterranean.
>> right. liz: jo ling, telling you right now, you look at greece at the moment, they seem tiny and insignificant. they are not. >> certainly geopolitically there is a big play here. there is no doubt that all of the other countries we haven't talked about yet have a huge stake in this. you have to look at the french finance ministers, seemingly very encouraged by possibility of a deal. then you move to germany, the finance minister says basically no way, jose. the broader regional and international political situation, seems like the greece deal may not happen but a lot of people want it to. liz: i would like to use gary k.'s, line, i would let greece take a powder. i hadn't heard that. >> me either. >> it is vent wally, liz. they're not good for the euro. >> we have to move on because there is something a little sexier than greece at the moment. "50 shades of grey" exploding at the box office with a record-setting 81.7 million debut. that grey is turning into green for companies, by with you ones,
steven lieb? by the way it was number one in 34 different foreign markets. >> it is just a phenomena. everybody knew it would be a famom that. what is surprising people like our companies, massive companies like walmart, which cater church-going, christians, selling these kinds of things. liz: they have sexy -- >> helping sell viagra in their medicines, among their prescriptions but on the other hand they do face, the risks of some sort of a backlash. but i think, when i think about walmart, i think about something that warren buffett once said about actually, about your company now, "wall street journal." there is no work across the street from walmart. they can more or less do what they want and their customers will keep coming back. liz: obvious one is amazon, sold the book in the first place. >> 100 million copies sold overall.
even if there is minority backlash, certainly a big play for a lot of companies. we can't forget the aarp did a valentine's guide based on the "50 shades of grey." they have a sense of humor. these products are not necessarily meant for what they look like they're for. >> comment here, kaltbaum, what do you think? >> well, i went to see it yesterday and i don't know how i am getting two hours of my life back, that is how bad it was. [laughing] look, when ever you have movies or books, people, trillions of people are reading, companies are going to take advantage of it. they will do everything possible to get the products out in front of them. you will see teddy bears in handcuffs, you name it, it will be out there. liz: hey, that is business, isn't it? also business, apple looking for the next hot product, beyond everyday mobile technology. got to move into cars? is apple taking on more than it can handle? can this really be profitable? would you buy one? plus, some investors watch technicals, some watch
fundamentals when considering their next move or the purchase for their portfolio. right now both are apparently telling some very smart money managers one thing. what is it about the markets you need to know? it is being called the most successful company in the world providing huge returns. if you invested in one dollar in this company in 1968, it would be worth more than $6,000. the s&p would be worth just $87. we'll tell you which company this is next. ♪
when the moment's spontaneous, why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. tbut at t. rowe price,et is never clear. we can help guide your retirement savings. our experience is one reason 100% of our retirement funds beat their 10-year lipper averages. so wherever your long-term goals take you,
we can help you feel confident. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. call us or your advisor. t. rowe price. invest with confidence. we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can say, "i did it!" ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners. and we're here to help start yours. turning dreamers into business owners. i'i like to think of myself as more of a control... enthusiast. mmm, a perfect 177-degrees. and that's why this road warrior rents from national.
i can bypass the counter and go straight to my car. and i don't have to talk to any humans, unless i want to. and i don't. and national lets me choose any car in the aisle. control. it's so, what's the word?... sexy. go national. go like a pro. liz: you want to squeeze into an apple car? apple reportedly getting into the car business with its very own electric vehicle. can it do it alone? does it need partners? we bring back our panel. jo ling, you're the apple expert here. in a way they have already brought in partners. they are hiring a lot of people from the car industry. >> they are. mark newsom, a good friend of the head designer at apple.
this is a really big deal at apple for them. he designed a ford concept car. reportedly according to the journal there is 100 people reportedly working on the car inside of apple. apple is very much in the software game right now in addition to the watch and phones. they do very, very well. it could be the way they sell solve the software problem. because the car industry, frankly, hasn't been able to figure it out. liz: gary, supposedly, this is in form of a leak. it is in the form after minivan? apple what are you thinking, right? >> well, i've got to tell you when ipad came out i thought it was another walkman, so i'm not a genius on this. i think you have this apple company, they're an innovator. they're very environmentally conscious. i think they will go after the electric car in a very, very big way. i think they think they could improve on it. i would not be surprised if they come out of something. we're talking a few years away. apple, good news for apple
because they have cash. it is cap it will intensive i can tell you that. liz: they have a cash pile of $178 billion, steven. they have the money but do they have the patience to deal with something like that? >> liz, i think they do, and one thing i which thought was very, very interesting. as soon as apple made this announcement, all the chinese electric car companies shot up. byd -- liz: there is no one else, by the way. just a rumor. >> byd went up like 10% and all the others, because they want to sell parts and they want to sell equipment to apple. they want to be suppliers to apple. one thing apple has to contend with, making an electric car, you need a lot of different parts, no pun intended. among them you need a supply of lithium for the battery. that comes from south america. they have a lot of work ahead of them. >> they can turn to tesla to see how hard it is really. by the way tesla is poaching a lot of apple employees so there
is that. let's move on. government proposing regulations on commercial drones. we told you that at the top of the hour. how will the rules be implemented or will they ruin the industry or is some regulations necessary? >> i think regulations are necessary. liz: everybody has them. >> but uniform regulations is ridiculous. liz: i don't think that is what they did. they did some for small ones, you have to be in eyesight for thing you're operating and then there is commercial ones. >> even for commercial ones and there is difference between race car driver and someone who wants to go to lime rock to try out his porsche some day. they might an able to expedite deliveries and shipments. there might be a way around this they can't preclude it at start. liz: jo ling, you can get the waiver granted if you show your technology is safe. maybe that is the way amazon
gets around it. >> we have to remember, this all drones under 55 pounds. they have a very heavy government lobbying effort. just because they aren't getting their way now in the proposal doesn't mean it is going to happen. plus often times the u.s. likes to follow in terms of technology. you look at the u.k., already driverless cars. you see a lot of drone testing in the united kingdom. perhaps the u.s. says we don't want to fool with this see what works, what doesn't and take the efficient route. liz: realtors are happy. they can take aerial shots and be within eyesight of these things, right? >> yeah. there are 70,000 pages in the federal register. i'm not for more. when you have something weighing 50 pounds going 100 miles-an-hour, i don't need that coming through my window. i don't mind regulations. then you can come back off the regulations as companies prove themselves. i like the word waiver. if companies show they know what the heck they are doing and are safety conscious, i'm all for it. liz: everybody has to be --
hairdressers are subject to regulation. great to see all of you. gary kaltbaum, steven lieb and jo ling kent. we've been ask you guys on social media if you think the drone industry needs to be regulated. spencer writes, anything is a risk when amateurs can purchase and operate. we purchase vehicles and locally license them. this is why we have liability in the this country. we would love for to you join spencer and the rest of us in the conversation. you can message us on facebook or tweet u.s. @fbnatb. a new report by citigroup names the most successful company in the world. steven is waiting around to hear it. looking at performance of major industries from the year 1900 to 2010, looking at sectors tobacco topped the list. within the sector one company stands out. here it is, altria. one dollar invested in altria back in 1968 worth $6638. that amounts to an annual return of more than 20% per year for
nearly half a century. the same dollar invested in the s&p would be worth $87. by the way no other company came close to matching altria's long-term returns. steven was saying maybe berkshire is coming close. when you put all the metrics together it is altria. some look at sectors, some of you look at fundamentals to give you an idea where the market or stock is headed. we look at both sides. guess what? both sides for once in a long time are sending the exact same signal right now. we'll break it down what the signal is telling us. plus if you have the space, a former air force one, there it is, is looking for a home. the only one ever sold to a private citizen. the details on that, straight ahead. tonight on a special president's day edition of "strange inheritance," jamie colby meet as family who inherits extremely rare letters written to their grandmother from a junk john f. kennedy.
>> when i first looked at them, i said, wow, promptly put them in a safe deposit box. >> there they remained for the next quarter century but a surprise phone call from a stranger will reignite this family's interest in their unique inheritance. liz: a very stunning and touching story. you can catch the rest of it tonight on "strange inheritance," 9:00 p.m. eastern right here on fox business. ♪ ♪ hi, tom. hey, how's the college visit? you remembered. it's good. does it make the short list? you remembered that too. yea, i'm afraid so. knowing our clients personally is what we do. it's okay. this is what we've been planning for. thanks, bye. and with over 13,000 financial advisors, we do it a lot. it's why edward jones is the big company that doesn't act that way.
to breathe with copd?ow hard it can be it can feel like this. copd includes chronic bronchitis and emphysema. spiriva is a once-daily inhaled copd maintenance treatment that helps open my airways for a full 24 hours. spiriva helps me breathe easier. spiriva respimat does not replace rescue inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva respimat. discuss all medicines you take, even eye drops. if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain or problems passing urine, stop taking spiriva respimat and call your doctor right away. side effects include sore throat, cough, dry mouth and sinus infection. nothing can reverse copd. spiriva helps me breathe better. to learn about spiriva respimat slow-moving mist, ask your doctor or visit spirivarespimat.com
liz: let me tell you something. the market surprised a lot of people last week. they hit new highs with the nasdaq hitting a 15-year high. check out the s&p 500, setting a new all-time high on friday. so will the markets continue their momentum higher? we've got two managers, who have two very different ways of coming up with now what appears to be the same answer. the technical side, and the fundamental side. with me for the technical corner, j.c. parets, eagle bay capital founder. with the fundamental opinion, joe fami. joe, right off the bat, fundamentals, i call them the emotional side. it is basically the images of facts, the ceo, the comments, the markets. what gives you a sense from a fundamental opinion that the markets go higher? >> two biggest things fundamentally are earnings and interest rates drive the market. earnings are still strong. interest rates are low because of globally coordinated effort
to pump liquidity into the system, keep interest rates low. we've seen so far this year 17 different countries cut rates. liz: central bank rate. >> central bank rate. we're making new highs but sentiment is high but not that many people are bullish. liz: they're missing out, aren't they? >> yeah. liz: j. consider, you believe the markets are going higher for completely different reason, x everything joe said. >> we do analysis from structural standpoint and from the tactical perspective. what we've seen over the last three months is a beautiful, healthy consolidation, filled with sector rotation. that to me, looking bigger picture, makes it very difficult to be bearish. rallied into november. consolidated major averages. look at dow jones industrial average, s&p 500. we've essentially gone nowhere. nasdaq 100 you just mentioned, transportation index, all in this sideways range for three months. from my perspective i see a big base ready to lift off to make new highs. more importantly we're already
seeing breakouts in the mid-caps and in the russell 2000 small cap index, already making new highs, coming out of even bigger bases. so, as they say, the bigger the base, the higher in space. i think we're off to the races across thehboard. liz: sitting here with two gigantic bulls. i will have to play the bear. right off the bat leads me to wonder and our viewers want to know what u buying, joe based on your newfound belief. >> biotech. liz: volatile sector. >> strongest. outperformed the market last five years. still large caps have huge earnings growth and sales growth and small as mid-caps have huge potential. liz: i-shares is the way to do it? >> yeah. too tough to recommend specific stocks in the sector. i agree it is volatile. i would go with the etf for entire sector. liz: you say this beautiful performance for a year will continue? >> i think it will go higher. >> what are you buying, j.c. >> i continue with the theme.
i like health care. health care is a monster. just like major averages consolidated in a very healthy way over the last three months. i think we get a breakout. xlv in particular. i think we probably see $76 in that etf. i like internet names. we've been consolidating sideways. theme of sideways consolidations resolving themselves to the upside. extremely bullish. there is the dow jones internet index. there is fdn, in there you have googles and netflix and ebays of the world. they are internet stocks. for our hedge fund we own entire basket all of them. we're long twitter. i think both of them go a lot higher. >> now i have to play the bear which i'm not, because i'm with you, joe, on the central bank involvement, that they put a gigantic feather down pillow underneath the markets so nothing bad will happen. trees do not grow to the sky. markets hit record after record. look at s&p five-year, since 2009, make that six years, what
point is there some type of a shakeout? >> i think that there continues to be shakeouts. even though it has been straight up for the past five years, that there have been shakeouts. i'm bullish. there will continue to be shakeout, pullbacks, quick corrections based on global uncertainty or something in congress for example. but they are just going to be a buying opportunity. i think we're going higher. i'm not blindly bullish saying we're going to the moon straight up. liz: anybody like, gold, silver, oil? >> i think you stay away from all that stuff. you to your point talking about s&p and markets make new highs. i would argue s&p and dow are getting all glory. russell 2000 and mid-cap 400 have gone nowhere in a year. these are fresh breakouts and something new. liz: russell 3,000 hit a record friday. i look at that, that is massive -- >> agree 100%. liz: great to see you both, joe, j.c., the team to watch. coming to the same conclusion through different roads.
j.c. parets, joe fahmy. not playing around, containers sitting idle at west coast ports. we've shown you these. look at them, holding crucial merchandise for the toy industry. just how badly will the toy industry be hit? what does that mean for you? from flying president eisenhower to nearly forgotten? this is a story of a air force one plane that is now looking for a new home. you have to hear this story. we've got details next. ♪
the real question that needs to be asked is "what is it that we can do that is impactful?" what the cloud enables is computing to empower cancer researchers. it used to take two weeks to sequence and analyze a genome; with the microsoft cloud we can analyze 100 per day. whatever i can do to help compute a cure for cancer, that's what i'd like to do. does your mouth often feel dry? multiple medications, a dry mouth can be a side effect of many medications. but it can also lead to tooth decay and bad breath. that's why there's biotene, available as an oral rinse, toothpaste, spray or gel. biotene can provide soothing relief and it helps keep your mouth healthy too. remember, while your medication is doing you good, a dry mouth isn't. biotene, for people who suffer from a dry mouth.
is it crazy that your soccer trophy hey, girl. is talking to you right now? it kinda is. it's as crazy as you not rolling over your old 401k. cue the horns... just harness the confidence it took you to win me and call td ameritrade's rollover consultants. they'll help with the hassle by guiding you through the whole process step by step. and they'll even call your old provider. it's easy. even she could do it. whatever, janet. for all the confidence you need td ameritrade. you got this.
liz: the impacts of the partial shutdown of ports up and down the west coast has rippled across u.s. supply chains, slowing deliveries across a range of industry. we talked about apparel. we talked about the auto industry but now the toy industry. how much damage are they enduring? adam shapiro is live right now at the massive new york toy fair. adam? >> let's give you the story of what the entire toy industry is going through, through the events taking place from one toy company everyone is familiar with. pacific play tents. if you have a kid who likes teepees or something smaller, you're familar with this company. this is princess pavilion and space galaxy tent this is new
for 2015 but thousands of these tents are sitting in thousands of containers on ships, off the coast of the united states waiting to be unloaded. let's talk to rebecca, from the toy industry association. she is the federal government director of events. this is having an incredible impact because we were speaking to the owner of pacific play tents, even six months, if they were to settle the strike tomorrow, to get back to normal. 600,000 plus jobs on the line. what is going on? >> we've been dealing with this for several months. congestion issues started in october. we're seeing impacts from small companies like these. we have delays and canceled business orders, the impact has range and definitely lost jobs and closed businesses resulted. >> the government, there is movement to get the negotiation settled with the union and the ports. here is the problem, all the containers. of the empty containers have to go back to places like china to
be filled with orders being written of the those containers are not being sent back. that is where the backlog is being created, correct? >> yes. so as a result, there is definitely, that additional congestion. people are feeling it everywhere from toy companies in new york to citrus grocers in california. >> people talk about what a about a contingency plan? we asked the owner could you ship through airfreight. it is not economical. there is no other route. how about go to different port. because a contract now signed last october is sitting off the coast waiting to be unloaded today. >> yes, that's correct. we're hearing these kinds of stories. even companies that can do contingency plans, this costs companies millions of dollars per week to enact the contingency plans. >> from the toy industry association are you hearing anything from the u.s. government, from the department of labor that would indicate there is some kind of at least agreement that can be reached within the next few days? >> that is certainly our goal.
this weekend secretary of labor went in to talk to both sides and to really urge for an agreement. that is just what we're calling for, an agreement between the two sides and get our ports back into working order. >> rebecca mahn, director of government affairs. thankthank you very much from ty industry association. as we wrap up with pacific play tents, not just in terms, liz, david, of containers being waiting to be unloaded, but thousands upon thousands of containers now empty but not on their way back to asia to be filled with new product. there is a six-month ramp up to get us back to normal when the strike is settled. back to you. liz: the slowdown, we're waiting to see what happened. we've been agitating too, adam. we knew this would affect gross domestic product. now you see how. adam shapiro live from the toy fair. thank you so much. do you have a lot of room in your backyard, maybe for air force one? the only presidential aircraft
ever sold to a private citizen is now rotting away in the arizona desert. it is looking for a place to call home. but it is not just any air force one. fox news's alicia acuna has more on the story. alicia? >> hi, liz. this is something that actually happened kind of by accident. it is a old lockheed constellation that was the official aircraft for president dwight eisenhower between 1954 and 1954, before these types of aircraft were referred to as air force one. now it has been sitting on a firmed in a regional airport near tucson for about a decade. it was an incident on this aircraft that prompted all american presidents to fly under the call sign air force one. the plane now sits in a field at the airport outside of tucson. >> that is a very significant number there, 8610. that changed the whole course of presidential transport history. >> it carried president dwight eisenhower in about a year.
one evening in 1953 the aircraft was involved with frightening incident with the president on board. >> for air traffic control purposes, flight 8610, in 1953, this aircraft and eastern airlines flight 8610 ended up in the same airspace over new york city. >> call sign air force one was born. plane was eventually replaced and ended up at davis air force base. where the history was lost and sold at auction to a man named mel chrysler who needed planes for crop dusting. 10 years later, the smithsonian called mel to tell him the plain's history. >> he decided to restore it. worked with another gentleman, harry oliver for 10 years and tried to sell it. >> with no buyers, it ended up here. timothy coons hopes to find somebody to help restore it. >> i home somebody says, let's go get that thing.
that would be a plus. >> restoring it comes with $1.5 million price tag. we do have some good news we received. president eisenhower's granddaughter, mary jean, who is at board, heads board of his library and museum. the staff is telling fox news they are actively pursuing the plane. liz? liz: that's cool. okay. then it would go back to in a way its rightful flyer. alicia, thank you so much. alicia acuna. illinois late to the game when it comes to fracking and cost the state big-time. jeff flock mining around for the real deal on this story. jeff? >> a gold but sunny day here in illinois. the sun is setting, liz, on i will knows's opportunity for the -- illinois's opportunity for next big thing in fracking. why is that? back after the break. >> hi, everybody, i'm gerri willis coming up on my show at top of the hour, obamacare supporters are pushing the white house to give millions
of americans facing obama care tax penalty, a break. that is one of the big stories coming up on "the willis report" in just a few minutes. relief so smooth... ...it's fast. tums smoothies starts dissolving the instant it touches your tongue ...and neutralizes stomach acid at the source. tum, tum tum tum...♪ smoothies! only from tums.
it's working for new york state. already 55 companies are investing over $98 million dollars, and creating over 2100 jobs. from long island to all across upstate new york, more businesses are coming to new york. they are paying no property taxes, no corporate taxes, no sales taxes. and with over 300 locations, and 3.7 million square feet available, there's a place that's right for your business. see if startup-ny can work for you. go to startup.ny.gov.
point, liz. we're at one of the sand mines, one of the sand mines they hoped would help fuel the fracking boom. all good things don't necessarily come to those who wait. look at the illinois basin. this is a huge deposit of oil, part of the new albany shale, part of 300 billion, with a "b," of oil to be in the ground. because illinois took so long in permitting process, where they went in time they approved fracking and when oil prices were doing at that time, you see that was bad confluence of events. just as oil prices went down, that's when they approved fracking. right now nobody wants to frack in illinois because it just doesn't make economic sense. we talked to seth white hide with energy in depth illinois. he says things quiet right now due to the price of oil, no question. it prompted producers in illinois to be cautious. cautious meaning they will not
renew the mineral leases they took out with a lot of farmers out there. a lot of companies, liz, were speculating here. one of them, strata x, a denver-based company, invested $2 million worth of mineral leases. now leases which are probably worthless to them and, ceo of strata-x saying i wouldn't be standing by the mailbox if i were a farmer right now. i think you're going to need to go back to farming. it also means a loss of a lot of oil revenue, oil tax revenue which would have come to the state which as you know, tremendously needs it. liz: well, you're right to say timing. only thing between garbage and salad is timing. jeff, thank you very much. jeff flock. >> and newspapers. >> yeah, exactly. timing. very important. we've been asking you if you think the drone industry is should be regulated because new regulations just came out? ray says, pilots of drones should be licensed and trained to run them. but again they're drones.
they don't really have pilots. talking about people on the ground making sure they run. terry says, 10 pounds traveling 30 miles an hour can kill you. imagine getting hit in the head. thank you very much for joining us. "the willis report" is next. gerri: hello, everyone, i'm gerri willis and this is "the willis report, the show where consumers are our business. it is the biggest bank heist ever, up to a billion dollars stolen. how did hackers break in so easily and is your money safe? more than 100 banks and financial institutions in 30 countries have been affected. another obamacare computer meltdown. more extensions given. top democrats are pressing the white house for even more forgiveness, exemptions from the law. winter storm warning for nearly 50 million americans. an arctic blast from the northeast to the midwest and the south. >> never seen it ever like